Recording of Stock Consumption/ Stock Wastage/ Stock Audit Adjustments

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Inventory Activities/ Stock Adjustments:

Recording of Stock Consumption/ Stock Wastage/ Stock Audit Adjustments

How to add Opening Stock in Quick Books?

With Stock adjustments form you can record opening stock/ Stock wastage/ Stock Consumption with change of Offset GL account for each specific type of entry. Stock can be adjusted based on just Quantity and Quantity and Value.

To record consumption of certain items in case you are handling manufacturing/production in quick books and making items adjustments on periodic closing stock count, choose cost of goods sold (COGS) account as it would be direct material consumed cost.

Stock Wastage/Damage recording = COGS Account

Opening Stock entry/Adjustment in Opening Stock = Opening Balance Equity Account (System will warn you to select expense account, but for opening stock ignore that message).

Physical & System Stock Difference/ Stock Audit Adjustment = Use COGS account and keep it same for both upward and downward item adjustments

Physical is less than System Stock = Credit Stock in Trade A/C & Debit COGS (Expense) A/C

Physical is Greater than System Stock = Debit Stock in Trade A/C & Credit COGS (Income) A/C

Follow the Navigation to Open this form:

Go To > Home Page/Inventory Tab > Inventory Activities -> Quantity and Value Adjustment

You will get this screen

  1. Select the “Quantity” option from the dropdown list.
  2. Select transaction date.
  3. Select adjustment account from the dropdown i.e., “Wastage of Material” for stock wastage and “Stock Consumed” account for Stock consumption recording.
  4. Select customer Job for charging consumption.
  5. Select the Inventory Site/warehouse/location where the specific items units require adjustment.
  6. Select the class/Cost Center for charging Cost to a cost center/project.
  7. Click find and select items and here select the items you want to record the consumption. You can also search directly from the item column by clicking on each row.
  8. In the quantity difference column enter the items consumed/Wasted with negative sign. Note: add positive qty if you want to increase stock.
  9. In Memo field you can enter any kind of description.

Your double entry should be like this

Wastage of Material/Stock Consumed A/C                   XX (Debit)

Stock In trade A/C                                                                        XX (Credit).

Vice Versa in case of stock upward adjustment.-

Opening Stock Entry will be like this:

Stock In trade A/C                                                        XX (Debit)

Opening Balance Equity, A/C                                                                  XX (Credit).


Click Save & New or Save & Close  to save your transaction.

Thank You!

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